§ Mr. Nigel Evans (Ribble Valley)To ask the Secretary of State for Social Security what help will be available io people on low incomes to pay their council tax bills from 1 April; and if he will make a statement.
§ Mr. BurtThe new council tax benefit scheme will replace the community charge benefit scheme from 1 April and is expected to help more than 5 million people to pay their council tax bills, at an estimated cost of around £1.6 billion. People on low incomes will be eligible to claim benefit whether they are in or out of work, sickm or unemployed.
Unlike community charge benefit, there will be no minimum charge to pay under the council tax benefit scheme, so that people on income support or equivalent levels of income, will receive help with up to 100 per cent. of their tax bills. Smaller rebates, based on a sliding scale, will be available to people with incomes above income support levels.
Council tax benefit will also be available to certain people with higher incomes who would not normally qualify for income-related benefits where they share their home on a non-commercial basis with another person who is on a low income.
In addition, people on income-related benefits will gain from the Government's decision not to re-claim the amount included in these benefits for the 20 per cent. contribution under the community charge. This measure is worth £0.75 billion at 1993–94 prices.
This means that even after paying their local tax, around six million liable people on income-related benefits will be better off under the new council tax benefit scheme. Some people will be up to £2.80 a week better off.
420WThe new benefit has already been publicised in local, regional and free newspapers during March, and will be followed up by further advertising during April and May at a cost of around £750,000. A comprehensive leaflet called "Council Tax Benefit—Help with the Council Tax"—CTB1—has already been produced and can be obtainedfrom post offices, social security offices and council offices, or by returning the coupon or telephoning free the number shown in the press advertisement. The leaflet is also available in 12 other languages.
A detailed information pack, setting out the principles of the new scheme, has been sent to each Member of Parliament, and will be made available to other interested groups.
Source: Figures based on 1988–89–90 Family Expenditure Surveys uprated to 1993–94 prices and benefit levels and estimated council tax levels.